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GoDaddy Files Patent for Method of Selling Equity in Domain Names

Domain registrar files patents for system to sell equity in domain names.

Go Daddy Group Inc. has filed a patent for a method of selling equity in domain names and protecting the domain names in which the equity is issued.

The patent is for a system that will facilitate the sale of shares in a domain name. The patent application explains that a number of institutions are interested in investing in domain names, but there isn’t a simple mechanism to do so. Conversely, many domain owners are interested in selling equity in their domain names, but need a way to connect with investors.

The sale of shares of equity in a Domain Name associated with the current invention simplifies the current rudimentary process by which Registrants attract investors through either knowing the party or being connected through outlets such as forums or other online media. Such a centralized sale of shares of equity would need to provide means to underwrite the sale of such equity and provide a means to protect the domain name from inadvertently or fraudulently being transferred to another entity…

…The invention should have a desirable side effect on the entire domain name industry in that it may provide a significant amount of secure capital to registrants, which would allow them to develop their domain name organizations and invest in capital expenditures such as dedicated servers, other domain names, etc., while providing assurance to potential investors and underwriters that the domain name may be protected and used as collateral during the sale of such equity in the domain name.

It was filed in December 2007. However, the patent appears to be fundamentally different from Fusu. It connects domain owners with underwriters, who provide proposals back to the domain owner. I don’t think it covers selling individual shares on an open market, but I’m not sure. I agree with Greg, this has to do with mechanics of an exchange and protecting the domain in which equity is sold.

While I’m not going to take the time to review GoD’s application (which is all it is for now; if and until it issues w/allowed claims) and compare it to what you guys do, it would be a good idea to contact the examiner on their app to make him/her aware of your system; to be sure no claims are allowed that could cause a problem for what you do.

Though you’d likely win a court case in such a situation; it’s better (and far easier) to deal with it while the app’s in process.

Much harder (and expensive) to win in court, since once a patent’s issued it can only be overcome by “clear and convincing evidence.”

Might not really matter whether the patent gets approved or not. GoDaddy would not be doing this if this they had no intention of implementing it. It is the successful implementation that is important not the registration of a patent. In many ways it might be better if they didn’t get it, then they would be subject to market competition. Of course implementation might be contingent on registration, but I doubt it. They are probably just trying to put a marker in the sand by staking their claim.

I had a domain that was in redemption due to Godaddy error it was in my acct and also registered to searchtoppers.com when I called and pushed for them to give my domain back it suddenly was changed from Searchtoppers.com to me in the whois in less than 5 minutes SMELLS FISHY AND Searchtoppers is located in the same addy as Godaddy BMW dealership building.. a new hiding place WOW check it on nodaddy.com